Tag: Stock pick

Warren Buffett has built one of the greatest investing records in history by owning high-quality businesses for very long periods.

Of course, we cannot know which ASX shares Buffett would actually buy. He may look at the Australian market very differently from me, and price would also play a major role in any investment decision.

What we can do is look at the types of businesses he has historically favoured and ask which ASX shares appear to share some of those characteristics.

Here are three that stand out to me.

Wesfarmers Ltd (ASX: WES)

One trait I associate strongly with Buffett is a preference for businesses that are relatively easy to understand.

Wesfarmers certainly fits that description in my opinion.

Its portfolio includes consumer businesses such as Bunnings, Kmart and Officeworks, which sell products millions of Australians regularly buy. These are established brands with large customer bases and strong positions in their respective markets.

I think Bunnings is particularly interesting from a Buffett-style perspective. Its scale, brand recognition and store network would be extremely difficult for a new competitor to replicate.

Wesfarmers also has a long history of allocating capital across different businesses. That is another characteristic I would look for when trying to identify a company Buffett might appreciate. Strong management teams can create significant value when they have the discipline to invest heavily in attractive opportunities while avoiding poor ones.

The price still has to make sense, but I think Wesfarmers has many of the business qualities I would expect a Buffett-style investor to value.

REA Group Ltd (ASX: REA)

Buffett has often invested in companies with powerful competitive advantages.

REA Group is one ASX share I think fits that profile particularly well.

Its realestate.com.au platform has become an important part of the Australian property market. Buyers naturally want to search where the largest number of properties are listed, while sellers and real estate agents want to advertise where the largest audience is looking.

That creates a powerful network effect. As more buyers use the platform, it becomes more valuable to advertisers. That in turn can attract more listings, which helps keep buyers coming back.

Businesses with this type of competitive advantage can potentially protect their market position for a very long time.

REA Group also benefits from a relatively capital-light digital business model, meaning growth does not necessarily require huge spending on physical assets.

For me, those qualities make it the kind of ASX business that deserves a closer look through a Buffett-style lens.

CSL Ltd (ASX: CSL)

Another Buffett characteristic I would look for is a business with a sustainable leadership position in an industry where replacing an established operator would be difficult.

CSL fits that description for me. The healthcare company has spent decades building its plasma collection network, manufacturing capabilities, scientific expertise and relationships across global markets.

Those assets cannot simply be recreated overnight.

Demand for many of CSL’s therapies is also connected to serious medical needs, giving the business exposure to healthcare demand that can persist through different economic environments.

There is also potential for long-term growth as the company expands production, develops new therapies and reaches more patients around the world.

CSL is more complicated than some classic Buffett investments, but I think its competitive position, global scale and long-term focus give it several qualities he has historically looked for in businesses.

Foolish takeaway

Trying to guess exactly what Warren Buffett would buy is unlikely to get investors very far.

I think the more valuable exercise is studying the qualities behind his investments.

Strong competitive advantages, understandable business models, capable management and the ability to generate attractive returns over many years are all characteristics worth looking for.

Wesfarmers, REA Group and CSL each appear to tick several of those boxes in my view.

The post How to find ASX shares that Warren Buffett might buy appeared first on The Motley Fool Australia.

More reading

• Why is everyone talking about CSL, Pro Medicus and BHP shares on Tuesday?
• Here’s what brokers tip for Wesfarmers shares over the next 12 months
• How much do I need in my superannuation to earn $50,000 per year in passive income?
• 3 reasons to buy this rebounding ASX 200 dividend stock today
• CSL earnings: FY26 sees reset and path to future growth

Motley Fool contributor Grace Alvino has positions in CSL and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Wesfarmers. The Motley Fool Australia has recommended CSL and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Wesfarmers Ltd (ASX: WES) shares have fallen into the red in early morning trade on Tuesday.

At the time of writing, shares in the conglomerate – whose retail subsidiaries include Bunnings Warehouse, Kmart Australia, Officeworks, and Priceline – are down around 1.5% and are changing hands for $83.58 a piece.

Today’s decline follows a 4% drop in the share price yesterday.

Interest rate and inflation concerns, and cost of living pressures have acted as strong headwinds for the company so far this year. 

Wesfarmers shares have been pretty volatile for the year-to-date, swinging anywhere between an annual low of $71.26 in mid-May and a high of $92.96 in mid-July.

The shares are now around 2% higher for the year-to-date but still 7% lower than a year ago.

For context, the S&P/ASX 200 Index (ASX: XJO) is up around 4% for the year-to-date, and roughly 1.5% higher than 12 months ago.

What do brokers tip next for Wesfarmers shares?

Wesfarmers is due to announce its FY26 results on the 27th of August. 

Investors are eager to find out Wesfarmers’ FY26 key group financial metrics and final dividend size. The result is expected to influence the direction of Wesfarmers shares and sentiment about the company’s outlook.

Wesfarmers has already paid a fully-franked interim dividend of $1.02 per share. Consensus estimates point to a final FY26 dividend of around $2.20.

It looks like the experts are pretty bearish on the outlook for Wesfarmers shares ahead of its results announcement.

According to Market Index data, the majority of brokers have a sell rating on the conglomerate’s shares. The $78.16 average target price implies a potential downside of around 7% at the time of writing.

The data is similar on TradingView. Again, the majority (nine out of 15) have a strong sell rating on the consumer discretionary shares. However five still think the shares are a hold and one analyst rates the stock as a buy.

The average $77.56 target price implies a downside of around 7%, at the time of writing. Although some think that the shares have the potential to fall up to 22% to $65.10 over the next 12 months.

Morgan Stanley has a sell rating and a $79 price target. The broker recently warned that the rally in consumer discretionary stocks has “run ahead of fundamentals and is unlikely to prove durable”.

Alto Capital’s Tony Locantro also has a sell rating. He thinks that much of Wesfarmers’ quality and long-term growth outlook is already fully reflected in the current valuation. He added that future upside may be constrained by elevated market expectations.

The post Here’s what brokers tip for Wesfarmers shares over the next 12 months appeared first on The Motley Fool Australia.

More reading

• How to find ASX shares that Warren Buffett might buy
• Reporting season half-time report: 5 lessons from August so far
• How to build a strong ASX retirement portfolio with 10 shares
• Which is the best Vanguard ETF? VAS, VGS and VDHG compared
• Why I’d buy these 2 ASX ETFs for $10,000 a year in passive income

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Your superannuation is more than just a pot of savings to fund your retirement. It can also generate a regular passive income once you retire and transition to the pension phase. 

But exactly how much superannuation do you need to be able to earn passive income as high as $50,000 every single year?

Let’s investigate.

How much do I need in my superannuation to generate an annual $50,000 passive income?

The calculation is simple. You need to divide your annual passive income by the dividend yield of your total portfolio, and it’ll give you the amount you’ll need to invest.

The tricky part is that the answer varies significantly depending on your portfolio’s actual yield.

That means a 3% yielding superannuation portfolio would need to be double the size of one that yields 6%.

For $50,000 in passive income on a portfolio yielding 3%, you’d need a superannuation balance of around $1.66 million, because $50,000 ÷ 3% = $1,666,666.

Then, if your portfolio yields closer to 4%, you’d need a superannuation balance closer to $1.25 million to earn the same passive income.

To earn $50,000 per year on a 5% yielding portfolio, your balance would need to be around $1 million.

Increase that to 6%, and you’d need more like $833,000.

If you go higher again to 7% or 8%, you’d be able to earn $50,000 in annual passive income from a $714,000 or $625,000 balance, respectively.

And so on. The higher your yield is, the lower your superannuation balance needs to be.

Can’t I just invest in the highest-yielding ASX shares so that I can earn the same amount off of a lower superannuation balance?

Yes, but it doesn’t make good investment sense. 

When it comes to ASX dividend shares, generally the higher the yield, the higher the risk associated with that stock.

Ideally, you want a diversified portfolio of a range of good-quality ASX shares from different sectors and with a variety of different yields. 

And remember, you don’t need to invest the whole sum in one go. Start with a monthly investment and let compound growth do some of the hard work for you.

Give me some examples of ASX shares that I could look at

ASX blue-chip shares like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and CSL Ltd (ASX: CSL) all yield around the 3% level.

If you want something that yields a little higher, at around 4% or 5%, my picks would be something like Telstra Group Ltd (ASX: TLS), Endeavour Group Ltd (ASX: EDV) and NIB Holdings Ltd (ASX: NHF).

Then, for higher-yielding ASX shares, my picks would be APA Group (ASX: APA), Metcash Ltd (ASX: MTS), Fortescue Ltd (ASX: FMG), or Lendlease Group (ASX: LLC). At the time of writing, these shares yield between 6% and 8%.

The post How much do I need in my superannuation to earn $50,000 per year in passive income? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Aristocrat, Telstra, ANZ shares
• Why is everyone talking about CSL, Pro Medicus and BHP shares on Tuesday?
• How to find ASX shares that Warren Buffett might buy
• How many BHP shares do I need to buy for $1,000 per month of passive income?
• BHP Group posts record FY26 earnings and flags copper-led future

Motley Fool contributor Samantha Menzies has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has positions in and has recommended Apa Group, NIB Holdings, and Telstra Group. The Motley Fool Australia has recommended BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares are up 0.1% to 9,082 points on Tuesday.

Among the 11 market sectors, materials and miners are in the lead today, up 1.3%.

The financials and technology sectors lag behind, both down 1.5%.

Let’s check out some new ratings on ASX 200 shares today.

Bank of Queensland Ltd (ASX: BOQ)

The Bank of Queensland share price is $6.36, down 1.1% today and down 19% over 12 months. 

Morgans has an accumulate rating on the ASX 200 financial share with a reduced price target of $6.94.

The broker said: 

BOQ announced finalisation of its capital return related to the equipment finance whole-loan sale, alongside completion of ME customer migration to its digital bank platform.

We make material forecast downgrades. Target price reduced to $6.94/sh. ACCUMULATE retained at current prices, but noting only a c.13% potential TSR including the special dividend.

BOQ is trading on c.0.9x P:TBV and c.11x PER.

PLS Group Ltd (ASX: PLS)

The PLS Group share price is $4.95, down 2.8% today and up 118% over 12 months. 

Arthur Garipoli from Dolphin Partners has a hold rating on this ASX 200 lithium mining share. 

He said (courtesy The Bull): 

This high quality pure play lithium producer recently delivered a solid June quarter report in fiscal year 2026.

Sales were up 28 per cent compared to the March quarter and group revenue was up 31 per cent.

The company has benefited from rising spodumene prices and sustains a solid balance sheet.

Restarting the Ngungaju processing plant is expected to materially lift sales into full year 2027.

Speculation exists that PLS may resume paying dividends following stronger than expected cash generation in full year 2026.

Xero Ltd (ASX: XRO)

The Xero share price is $81.13, down 1.2% today and down 52% over 12 months. 

Tom Fairchild from Lazarus Capital Partners has a sell rating on the accounting software provider.

He said: 

The company generated revenue of $NZ2.75 billion in full year 2026, up 31 per cent on the prior corresponding period.

Xero shares bounced off a low of $61.58 on July 24 to trade at $77.51 on August 13, 2026.

However, the stock was priced at $168.78 on August 13, 2025.

Justifiable investor concerns about margin pressure, artificial intelligence growth and US expansion performance have weighed on the stock and sentiment. Investors can consider cashing in some gains.

The post Buy, hold, sell: Bank of Queensland, Xero, PLS Group shares appeared first on The Motley Fool Australia.

More reading

• Experts name 3 popular ASX 200 shares to sell today
• Here are the top 10 ASX 200 shares today
• 3 ASX tech shares with strong growth potential
• 3 top dividend stocks to target this week to supplement your superannuation
• How an Australian could retire with $1 million in superannuation

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BHP Group Ltd (ASX: BHP) shares are climbing higher in early morning trade on Tuesday, after the ASX mining giant posted a record FY26 earnings result.

The group posted a strong operational performance across all its key segments and an impressive 27% increase in its underlying EBITDA. 

Investors are clearly thrilled with the results and many are rushing to snap up the mining shares.

At the time of writing, BHP shares are trading at $64.44. That’s around a 4% increase for the day so far and around 41% higher for the year to date.

A strong financial result and climbing share price isn’t the only reason investors are interested in the stock. Investors are also thrilled with the miner’s higher-than-forecasted FY26 dividend and opportunity for passive income.

But what if you wanted to receive $1,000 of passive income from BHP shares every single month? How achievable is it? And what exactly would it entail?

Let’s take a look.

What dividends does BHP pay to its shareholders?

BHP has a history of paying reliable and consistent fully-franked dividends to its shareholders every year, in March and September.  

As part of its FY26 earnings announcement this morning, BHP declared a total fully-franked FY26 dividend of US$1.72 per share. This includes a US$0.73 interim and a US$0.99 final dividend. 

The exact Australian dollar equivalent won’t be fixed by BHP until the currency conversion period concludes on the 7th of September. But at the time of writing, US$1.72 per share equates to around AU$2.41.

Based on the current share price, this estimated converted dividend translates to a dividend yield of around 3.7%.

How many BHP shares do I need to generate $1,000 per month in passive income?

A $1,000 per month passive income totals $12,000 for the year. Using the figures above, in order to generate $12,000 per year in passive income from BHP shares alone, an investor would need to buy roughly 4,979 shares.

How much would that cost me today?

At the time of writing, to buy the 4,979 shares needed for $1,000 per month (or $12,000 per year) of passive income, you would need to invest close to $321,000. 

It’s not a small investment, but it could be worth it in the long run. BHP shares offer both a consistent passive income and also the opportunity for capital returns thanks to its healthy business financials and growing share price.

Also note that you don’t need to invest that entire sum in one go. Start small and let compound growth do some of the work for you.  

The post How many BHP shares do I need to buy for $1,000 per month of passive income? appeared first on The Motley Fool Australia.

More reading

• Why is everyone talking about CSL, Pro Medicus and BHP shares on Tuesday?
• How much do I need in my superannuation to earn $50,000 per year in passive income?
• BHP Group posts record FY26 earnings and flags copper-led future
• A200 vs NDQ: one Betashares ETF is the clear winner
• Reporting season half-time report: 5 lessons from August so far

Motley Fool contributor Samantha Menzies has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The WAM Leaders Ltd (ASX: WLE) share price is in focus after the company posted a 14.0% increase in its investment portfolio for FY2026, beating the S&P/ASX 200 Accumulation Index (ASX: XJO) by 7.9%, and announced a higher fully franked full-year dividend of 9.6 cents per share.

What did WAM Leaders report?

• FY2026 investment portfolio return: up 14.0%, outperforming benchmark by 7.9%
• Total shareholder return: 21.0% (24.7% including franking credits)
• Operating profit after tax: up 153.5% to $161.8 million (FY2025: $63.8 million)
• Operating profit before tax: up 176.5% to $218.3 million
• Fully franked full year dividend: increased to 9.6 cents per share (final dividend: 4.8 cps)
• Fully franked dividend yield: 7.2% (grossed-up 10.3%)

What else do investors need to know?

WAM Leaders reduced its share price discount to net tangible assets (NTA) from 7.8% to a 0.2% premium over the year, supporting shareholder returns. Notably, the company has paid out a total of 96.5 cents per share in fully franked dividends since listing in 2016, including franking credits.

The board has launched a Share Purchase Plan (SPP), allowing eligible shareholders to buy up to $30,000 of shares without brokerage, at a discount. A recent placement for professional and sophisticated investors raised $225 million, aiming to capitalise on attractive market opportunities.

What did WAM Leaders management say?

Lead Portfolio Manager Matthew Haupt said:

The 2026 financial year was characterised by changing interest rate expectations, geopolitical tensions, global trade disruption and evolving views on the sustainability of artificial intelligence-led growth. These conditions created periods of volatility and meaningful shifts in market leadership, generating opportunities for active investors

The investment team and I adjusted portfolio positioning as conditions evolved, including maintaining exposure to areas of the market where we saw attractive risk-adjusted opportunities, while remaining disciplined on valuation. This approach enabled the investment portfolio to outperform the S&P/ASX 200 Accumulation Index during the year.

Looking ahead, we remain focused on high-quality companies trading at attractive valuations. Periods of market volatility can create opportunities for active managers, and the investment portfolio is positioned to take advantage of these opportunities as they emerge.

What’s next for WAM Leaders?

Management says WAM Leaders is sticking with its strategy of targeting high-quality companies offering value, especially as volatility creates new opportunities. The $225 million capital raised through the SPP and placement increases flexibility for future investments with an active approach.

Shareholders can expect the board’s dividend-focused approach to remain, with the company aiming to deliver consistent income and capital growth through disciplined stock selection and sector positioning.

View Original Announcement

The post WAM Leaders lifts dividend as portfolio outperforms in FY26 appeared first on The Motley Fool Australia.

More reading

• These ASX 200 shares could generate $10,000 per year in passive income
• Here are the top 10 ASX 200 shares today
• How much superannuation do I need to retire comfortably at age 59?
• How much is needed in superannuation to target a $2,000 monthly passive income?
• ASX 200 utilities shares gained 7% while the broader market fell heavily last week

Motley Fool contributor Laura Stewart has positions in Wam Leaders. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Looking for a promising S&P/ASX 200 Index (ASX: XJO) dividend to bring in some handy extra passive income and potential capital gains?

Then you may want to have a look into REA Group Ltd (ASX: REA).

That’s according to Lazarus Capital Partners’ Tom Fairchild, who recently issued a buy recommendation on the online property listings company (courtesy of The Bull).

Less than two months ago, on 23 June, REA shares ended the day at a one year closing low of $131.52. In morning trade today, shares in the ASX 200 dividend stock are changing hands for $176.87 apiece.

That sees the REA share price up 34.5% since those June lows. While the REA share price remains down 32.4% since this time last year, Fairchild believes the past two months’ rebound has further to run.

Here’s why.

Should I buy this ASX 200 dividend stock today?

“REA is a multi-national digital advertising group specialising in property,” Fairchild said.

Citing the first reason he’s bullish on the ASX 200 dividend stock here noted:

Revenue from core operations of $1.793 billion in full year 2026 was up 7% on the prior corresponding period. Net profit after tax from core operations of $650 million was up 15%. Earnings per share of $4.93 was up 15%

Then there’s the promising passive income trend.

“The final fully franked dividend of $1.73 was up 25%,” Fairchild said.

REA declared that final dividend on 6 August, following the release of its FY 2026 results.

If you want to score the passive income payout, you’ll need to own REA shares at market close on 26 August. REA trades ex-dividend on 27 August. You can then expect to see that dividend hit your bank account on 11 September.

If we add in the interim full franked REA dividend of $1.24 per share, paid on 18 March, the full year payout equates to $2.97 a share, up 20% from the FY 2025 dividend payments. At the current REA share price, that sees this ASX 200 dividend stock trading at a fully franked yield (partly trailing, party pending) of 1.7%. Taking those franking credits into account, that works out to a grossed-up yield of 2.4%.

Which bring us to the third reason Fairchild issued a buy recommendation on REA shares.

He concluded, “Investors responded positively after the full year result was released on August 6. But we believe the company still has ample room to improve its performance from here.”

The post 3 reasons to buy this rebounding ASX 200 dividend stock today appeared first on The Motley Fool Australia.

More reading

• Experts name 3 ASX shares to buy this week
• How an Australian could retire with $1 million in superannuation
• 3 top ASX shares for beginners to buy now
• Could this be one of the ASX’s best AI shares to buy?
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The SKS Technologies Group Ltd (ASX: SKS) share price is in focus today after the company reported a record-breaking FY26, with sales revenue jumping 33.0% to $347.93 million and after-tax profit almost doubling to $27.11 million.

What did SKS Technologies report?

• Sales revenue: up 33.0% to $347.93 million (FY25: $261.66 million)
• Profit before tax: up 89.3% to $39.35 million (FY25: $20.79 million)
• Net profit after tax: up 93.2% to $27.11 million
• EBITDA: up 80.8% to $42.43 million
• Earnings per share: up 91.2% to 23.45 cents
• Full year dividend: 10.0 cents per share (up 66.7%)

What else do investors need to know?

SKS made significant strategic moves over FY26, including the acquisition and integration of Delta Elcom, boosting its presence in New South Wales and accelerating its push into the data centre market. A highlight for the year was securing a $210 million contract for a hyperscale data centre in Melbourne, which set a record for the group and showcased its growing capacity.

The company’s work on hand surged to $312 million at 30 June 2026, up from $200 million a year prior, providing a strong platform for future revenue. Importantly, SKS maintained its excellent safety record with zero lost time injuries, even as its workforce and hours worked both climbed.

What did SKS Technologies management say?

Chief Executive Officer Matthew Jinks said:

For the last several years, we have achieved quantum leaps in our financial, operational and people metrics that defy the norm and despite the challenges of the effect of compounding, take the business to the next level year on year.

What’s next for SKS Technologies?

SKS Technologies is targeting further growth, with the board forecasting FY27 sales revenue in the vicinity of $500 million and profit before tax of $60 million. Its expanded bank facilities and cash position provide flexibility and backing for continued investment and expansion, particularly in data centre infrastructure.

Ongoing improvements in technology, operational systems, and training are in place to ensure sustained productivity and the ability to meet strong demand in targeted markets, including major government and private sector projects.

SKS Technologies Group share price snapshot

Over the past 12 months, SKS Technologies shares have risen 260%, outperforming the All Ordinaries Index (ASX: XAO), which is flat over the same period.

View Original Announcement

The post SKS Technologies reports record FY26 earnings appeared first on The Motley Fool Australia.

More reading

• Up 250%! Broker tips this dividend paying ASX All Ords tech stock for more outsized gains
• SKS Technologies smashes profit guidance in earnings update
• Buy, hold, sell: SKS Technologies, Yancoal, Wesfarmers shares

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sks Technologies Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Pro Medicus Ltd (ASX: PME) share price is in focus today as the company announced full-year revenue of $261.7 million, up 22.9%, with underlying NPAT rising 24.1% to $144.7 million. The company remains debt-free and has lifted its fully-franked total dividend by 25.5% to 69 cents per share.

What did Pro Medicus report?

• Revenue: $261.7 million, up 22.9% year-on-year
• Underlying EBIT: $196.1 million, up 24.4%
• Reported NPAT: $265.3 million, up 130.3%
• Underlying NPAT: $144.7 million, up 24.1%
• Cash and financial assets: $252.3 million, up 19.7%
• Final dividend: 37 cents per share, total full-year dividend 69 cents, up 25.5%

What else do investors need to know?

Pro Medicus signed 10 new contracts during the year, totalling at least $407 million in value, including a major 10-year deal with UC Health Colorado. The company also renewed six key contracts, worth $141 million, all on five-year terms with increased transaction fees.

On a constant currency basis, revenue, EBIT, and NPAT each saw gains above 28%. The company’s pipeline remains strong, supported by new product launches in digital pathology and AI-optimised reporting as well as a nearly complete Trinity implementation.

What did Pro Medicus Limited management say?

Dr Sam Hupert, Chief Executive Officer, said:

We were aiming for 30% increases in EBIT and NPAT, and we exceeded both on a constant currency basis. Importantly, we have proven that with one platform and one business model we can address virtually every opportunity in diagnostic imaging, providing us with the largest total addressable market. Progress made in the cardiology market represents another important string to our bow. We see this trend continuing.

What’s next for Pro Medicus?

Looking ahead, Pro Medicus says it expects to benefit from its newly signed contracts and recent implementations, particularly as the Trinity rollout is now largely complete. Management highlights a strong pipeline with a growing number of inbound requests from major US healthcare institutions.

The company is aiming to further expand its presence in both diagnostic imaging and cardiology, leveraging its one-platform approach and ongoing product innovation.

Pro Medicus share price snapshot

Over the past year, the Pro Medicus share price has underperformed the S&P/ASX 200 index (ASX: PME) with a decline of around 45%.

View Original Announcement

The post Pro Medicus FY26: Strong earnings growth and higher dividend appeared first on The Motley Fool Australia.

More reading

• Reporting season half-time report: 5 lessons from August so far
• 5 things to watch on the ASX 200 on Tuesday
• How to build a strong ASX retirement portfolio with 10 shares
• 3 ASX growth shares I want to buy and hold forever
• Why I’d buy and hold Pro Medicus and DroneShield shares

Motley Fool contributor James Mickleboro has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Sims Ltd (ASX: SGM) share price is in focus after the company posted a 6.9% rise in full-year group revenue to $8,007.5 million, and underlying EBIT up 167.6% to $468.0 million.

What did Sims Ltd report?

• Group sales revenue increased 6.9% to $8,007.5 million
• Underlying EBITDA jumped 69.3% to $727.8 million
• Underlying EBIT surged 167.6% to $468.0 million
• Underlying NPAT rose to $289.1 million (up from $83.1 million)
• Return on Invested Capital (ROIC) improved by 7.2 percentage points to 11.7%
• Final fully franked dividend of 20.0 cents per share, bringing the full-year total to 34.0 cents

What else do investors need to know?

Sims’ Sims Lifecycle Services (SLS) division delivered standout growth, with sales revenue up 77.4% to $757 million, and underlying EBIT climbing 429.8% to $172.7 million, driven by strong demand for recovered memory components in the AI infrastructure sector. Repurposed units almost doubled to 16.8 million, reflecting deepening relationships with hyperscale data centre customers.

The North American and SA Recycling segments benefited from favourable non-ferrous prices and domestic US steel demand, offsetting ongoing challenges in the Australian and New Zealand metals business due to soft steel markets and limited tariff protection.

What’s next for Sims Ltd?

Looking ahead, Sims expects supportive market conditions for non-ferrous metals and AI-related asset recovery to continue into FY27. While the timing of data centre decommissioning remains variable, the company expects SLS to contribute first-half underlying EBIT between $75 million and $90 million.

The group also sees ongoing US tariffs and new electric arc furnace capacity supporting demand for ferrous scrap in North America. In Australia and New Zealand, domestic demand could strengthen over the medium term as new steel production capacity comes online. Sims remains focused on recovery optimisation, operational excellence, and disciplined growth through targeted investments and bolt-on acquisitions.

Sims share price snapshot

The Sims share price has been a very strong performer over the past 12 months, outperforming the S&P/ASX 200 index (ASX: XJO) with a gain of around 50%.

View Original Announcement

The post Sims delivers strong FY26 earnings growth as AI demand fuels SLS division appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.